What criteria does Remax use to determine the Minimum Agent Count for an office?
Remax Franchise · 2025 FDDAnswer from 2025 FDD Document
The actual number established for the First Stage Minimum Agent Count, Second Stage Minimum Agent Count and Third Stage Minimum Agent Count will be based upon such factors as sales agent count, population, market share, the size and number of competitor offices in the market, and other demographic data and trends in the area where the Office will be located. The suggested Minimum Agent Count numbers may also be reduced, at RE/MAX Regional's discretion, if the Office will be operated exclusively as a commercial real estate office.
Minimum Agent Count is established by RE/MAX Regional to achieve a desired market presence in the market area in which a franchisee operates; RE/MAX Regional is not representing that by achieving such Minimum Agent Count you will be successful or profitable.
If you are renewing an existing franchise relationship with RE/MAX Regional and you will be signing the Renewal Addendum to Franchise Agreement (Exhibit A-1), you will be required to have an approximate Minimum Agent Count in your Office equal to the following by the dates and during the periods set forth below:
(a) During each of the first 12 months of the Franchise Agreement the Minimum Agent Count will be equal to the greater of: (i) 60% of the actual number of Sales Associates you had at
the end of your previous franchise agreement or (ii) the Minimum Agent Count you were required to have as of the end of your previous franchise agreement.
- (b) Commencing the first day following the expiration of the first 12-month period and during each month thereafter through the 36th month, the Minimum Agent Count will be equal to the greater of 60% of the actual number of Sales Associates you had at the end of your previous franchise agreement or (ii) the Second Stage Minimum Agent Count required under franchise agreements then being sold or granted in markets of similar population density and/or demographics.
- (c) For the duration of the term of the Franchise Agreement, the Minimum Agent Count will be equal to the greater of: (i) 60% of the actual number of Sales Associates you had at the end of your previous franchise agreement or (ii) the Third Stage Minimum Agent Count required under franchise agreements then being sold or granted in markets of similar population density and/or demographics.
Source: Item 12 — TERRITORY (FDD pages 71–75)
What This Means (2025 FDD)
According to Remax's 2025 Franchise Disclosure Document, the Minimum Agent Count is a key requirement for franchisees, impacting their operational obligations and potential franchise renewal terms. Remax establishes this count based on several factors to ensure a desired market presence. These factors include sales agent count, population, market share, the size and number of competitor offices, and other demographic data and trends in the area where the Remax office will be located. This Minimum Agent Count establishes the number of sales associates a franchisee is required to bring into the Remax network during the development period of the franchise from companies not affiliated with Remax. It also establishes the minimum number of sales associates the franchisee must maintain on an ongoing basis.
For new Remax franchises, the Minimum Agent Count increases in three stages. The current parameters require approximately 7 sales associates by the end of the first 12 months, increasing to 15 by the end of the second year, and reaching 20 by the end of the third year. These staged increases are designed to help assure sales associate growth for the Remax network. Sales associates recruited from other Remax offices or who transfer from other Remax offices do not count toward meeting the Minimum Agent Count. However, in extraordinary circumstances, such as the imminent closing of a nearby Remax office, an exception may be granted by Remax Regional.
For existing Remax franchisees renewing their agreements, the Minimum Agent Count is calculated differently. During the first 12 months of the renewal, the Minimum Agent Count will be the greater of 60% of the sales associates at the end of the previous agreement or the Minimum Agent Count required at the end of the previous agreement. Subsequently, it will be the greater of 60% of the previous count or the Second or Third Stage Minimum Agent Count required under new franchise agreements in similar markets.
Failure to meet the Minimum Agent Count can have significant consequences. Remax franchisees must still pay all monthly ongoing fees, annual dues, and marketing fund fees as if the Minimum Agent Count had been met. Additionally, Remax Regional retains the right to terminate the Franchise Agreement if the franchisee fails to meet these requirements. Therefore, understanding and planning for the Minimum Agent Count is crucial for prospective and renewing Remax franchisees.